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April 22, 1983

How Cost Sharing Reduced Medical Spending of Participants in the Health Insurance Experiment

Author Affiliations

From the Health Sciences Program, The Rand Corporation, Santa Monica, Calif.

JAMA. 1983;249(16):2220-2222. doi:10.1001/jama.1983.03330400066026

In a controlled trial of the effects of medical insurance on spending and health status, much less was spent on medical care when patients had to pay for it themselves. They economized by being less prone to seek treatment or be hospitalized for their illnesses. The average cost per hospitalization and per ambulatory episode was the same for all insurance plans.

(JAMA 1983;249:2220-2222)